At a glanceWednesday, August 03, 2022

Collection Industry News At A Glance - August 3, 2022
Wednesday August 3, 2022
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TCH Asks CFPB to Define Larger Participants in Aggregation Services Market

The Clearing House has petitioned the Consumer Financial Protection Bureau (CFPB) to make new rules around aggregation services, or third-party companies dealing with peoples’ financial data, many of which aren’t looked into closely by the CFPB.

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Eleventh Circuit Requires Standing for All Class-Action Members, Decertifying TCPA Class Settlement

Class-action plaintiffs do not get a free pass on constitutional standing requirements, as the Eleventh Circuit Court of Appeals reminded litigants sua sponte in Drazen and, LLC v. Pinto last week when it vacated a district court’s approval of a $35 million class-action settlement.

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Agencies Invite Comment on Proposed Commercial Real Estate Loan Workouts and Accommodations Statement

ALEXANDRIA, Va. (August 2, 2022) – The National Credit Union Administration, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, in consultation with state bank and credit union regulators, are inviting public comment on a proposed policy statement(opens new window) for prudent commercial real estate (CRE) loan accommodations and workouts.

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National Credit Union Administration Issues New Proposed Rule Requiring 72-Hour Cyber Incident Reporting

On July 27, 2022, the National Credit Union Administration (NCUA) issued a proposed rule requiring federally insured credit unions (FICUs) to notify the NCUA within seventy-two (72) hours of discovering a reportable cyber incident.

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CUNA issues action alert to oppose interchange bill

CUNA issued an action alert Tuesday calling on credit unions to share their concerns with the interchange bill introduced by Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan. The bill would allow merchants to route payments through an unaffiliated network.

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Report: Equifax Glitch Sent Millions of Wrong Credit Scores to Lenders, Impacted Loan Rates

Equifax provided inaccurate credit scores for millions of Americans seeking loans over a three-week period in the spring, The Wall Street Journal (WSJ) reported Tuesday (Aug. 2). The credit bureau sent the scores to banks and nonbank lenders in response to people applying for car loans, credit cards and mortgages, according to the report, which was based on interviews with unnamed bank executives and other sources.

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DCS2022 Continues The Great Debate

DCS2022 – September 7 – 9 – where the Great Debate continues!  The Debt Connection symposium is known for both great sessions, as well as great networking. One session that always gets high marks is – The Great Debate. The perspectives of Originators, Agencies, Debt Buyers, and Law Firms allows for a lively, unscripted session often times highlighting the subtle differences in approach and implementation.

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Americans are piling up credit card debt as they struggle to keep up with the high cost of living

Americans are piling up credit card debt as they struggle to keep up with the high cost of living. US household debt surpassed $16 trillion for the first time ever during the second quarter, the New York Federal Reserve said Tuesday. Even as borrowing costs surge, the NY Fed said credit card balances increased by $46 billion last quarter.

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Attorney General Bonta Announces $15.5 Million Judgment Against Rent-A-Center

OAKLAND – California Attorney General Rob Bonta today announced a $15.5 million settlement against Rent-A-Center, one of the nation’s largest rent-to-own companies, for violations of state consumer protection laws relating to unlawful leasing practices and deceptive marketing. An investigation into Rent-A-Center’s “kiosk” business that operates out of traditional retail stores found that the company used an inflated “cash price” for products that was 15% higher than the retail price, potentially costing consumers hundreds of extra dollars, among other violations. As part of the stipulated judgment resolving the Attorney General’s investigation, Rent-A-Center will be required to comply with significant injunctive terms to deter future misconduct, pay $13.5 million in restitution to California consumers, and pay $2 million in civil penalties.

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CFPB adds new debt collection rule FAQs

Last week, the CFPB published additional frequently asked questions on Regulation F, its debt collection rule.   The new FAQs address third-party communications, electronic communications, and unusual or inconvenient time and place provisions.

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Attorney General James Takes Action to Crack Down on Rampant Robocalls and Protect Consumers Nationwide

NEW YORK – New York Attorney General Letitia James today took action to crack down on rampant robocalls and protect consumers nationwide. Attorney General James joined a coalition of 50 attorneys general to form a nationwide, bipartisan Anti-Robocall Litigation Taskforce to investigate and take legal action against telecommunications companies responsible for enabling a majority of foreign robocalls into the United States. The taskforce will work to cut down on illegal robocalls made to consumers nationwide. 

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Debt Collection Rule FAQs

This is a Compliance Aid issued by the Consumer Financial Protection Bureau. The Bureau published a Policy Statement on Compliance Aids, available here, that explains the Bureau’s approach to Compliance Aids.

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Spokane-based Global, Alaska USA become one in credit union merger

Spokane-based Global Credit Union has merged with Alaska USA Federal Credit Union, making it one of the largest financial cooperatives in the country. Under the merger, which closed Monday, the combined organization will have 760,000 members, more than 2,000 employees and hold $12 billion in assets.

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June 2022 wasn’t particularly robust, nor lackluster, nor surprising. FDCPA lawsuits were down a bit (-3.7%) while TCPA and FCRA lawsuits were up a bit (+4.8% and +.9% respectively). FDCPA and TCPA suits are still down double digits YTD (-20.7% and -28.8% respectively) while FCRA suits are still up YTD (+4.4%). CFPB complaints against debt collectors were down a bit (-1.3%) for the month and down a bit more YTD (-10.1%).

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CFPB Publishes RFI and Launches Initiative Focused on Relationship Banking

The CFPB recently published a Request for Information (RFI) “seeking comments related to relationship banking and how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets, as well as from their affiliates.”

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First Tech Federal Credit Union Raises more than $1.6 million to Support Children’s Hospitals

SAN JOSE, Calif. & HILLSBORO, Ore.--(BUSINESS WIRE)--Always eager to "chip" in, First Tech Federal Credit Union—the nation’s eighth largest credit union—together with First Tech employees and members, business leaders and credit unions from across the region raised more than $1.6 million dollars as part of the annual Credit Unions for Kids fundraising campaign, benefiting children and families served at Children’s Miracle Network Hospitals.

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CFPB Clarifies Stance on Electronic Communications and Time and Place Restrictions Through Updated Debt Collection FAQs

The CFPB has updated its Frequently Asked Questions (FAQs) to its Debt Collection Rule (Regulation F), 12 C.F.R. § 1006; Consumer Financial Protection Bureau, Debt Collection Rule FAQs, (last updated July 27, 2022),, which address questions related to the electronic communications and restrictions on communications at unusual or inconvenient times.  Both debt collectors and creditors should take notice. 

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Class-Action Settlement Approved in TransUnion v. Ramirez Article III Standing Case

A California district court has granted the plaintiff’s motion seeking approval of a class-action settlement in TransUnion v. Ramirez after the U.S. Supreme Court issued a ruling regarding the issue of Article III standing last June.

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FTC Takes Action to Stop Payment Processor First American from Trapping Small Businesses with Surprise Exit Fees and Zombie Charges

The Federal Trade Commission today took action against payment processing company First American Payment Systems and two of its sales affiliates for trapping small businesses with hidden terms, surprise exit fees, and zombie charges. The FTC alleges that the defendants made false claims about fees and cost savings to lure merchants, many of whom had limited English proficiency.

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CFPB recognizes national whistleblower day

The CFPB is proud to recognize the importance of National Whistleblower Day, which occurs every year on July 30th. The American tradition of whistleblowing – revealing information about illegal activity within an organization -- dates at least to Benjamin Franklin and the Revolutionary War. And whistleblowers at financial institutions have long played an important role in alerting the public as well as government agencies to illegal misconduct.

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California Privacy Protection Agency Board Votes to Oppose H.R. 8152, the American Data Privacy Protection Act

SACRAMENTO, Calif., July 28, 2022 /PRNewswire/ -- The California Privacy Protection Agency Board voted unanimously today to oppose as currently drafted H.R. 8152, the American Data Privacy and Protection Act (ADPPA), proposed federal privacy legislation that seeks to significantly weaken Californians' privacy protections by pre-empting the California Consumer Privacy Act and other state privacy laws. 

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DCS2022 Features Best Selling Author as Keynote – The Ethics of Artificial Intelligence in Financial Services

The “Don’t Miss Keynote”: The Ethics of Artificial Intelligence in Financial Services is just one of many interesting and insightful featured speakers and panels at Debt Connection and Symposium this year. The keynote speaker, Clara Durodié, is a technology strategist specializing in the business and governance of artificial intelligence (AI) in financial services. Join best selling author and Oxford pHD, Clara Durodie, for engaging discussion on the ethics and impact of the use of artificial intelligence in financial services.

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CFPB Issues Advisory Opinion ‎Regarding Convenience Fees

On June 29, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued an advisory opinion stating its view that the Fair Debt Collection Practices Act (“FDCPA”) prohibits debt collectors from collecting any amount, including convenience or pay-to-pay fees, unless expressly authorized by the agreement creating the debt or permitted by law. The advisory opinion also clarified that a debt collector may violate the FDCPA when it collects convenience fees through a third-party payment processor.

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Director Chopra goes on the record with media

Director Chopra gave interviews this week to several news reporting outlets including American Banker, Law 360, Politico, and Bloomberg.  Below are some of highlights of the interviews as reported by those outlets, several of which also provided interview transcripts. 

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CFPB encourages federal student loan servicers to conduct outreach to military borrowers on public service loan forgiveness

The Consumer Financial Protection Bureau (CFPB) is “encouraging” student loan servicers to identify their military borrowers in order to conduct proactive outreach encouraging them to consolidate their loans and submit applications for forgiveness under the Public Service Loan Forgiveness Program (PSLF). 

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CFPB and Justice Department Caution Auto Finance Companies about Servicemember Protections

WASHINGTON, D.C. – The Department of Justice and the Consumer Financial Protection Bureau (CFPB) issued a joint letter today reminding auto finance companies of their responsibilities to recognize important legal protections for military families under the Servicemembers Civil Rights Act (SCRA). While servicemembers have the same rights as non-military borrowers, the SCRA provides additional rights to protect servicemembers and their families against unique financial challenges.

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CFPB Fines U.S. Bank $37.5 Million for Illegally Exploiting Personal Data to Open Sham Accounts for Unsuspecting Customers

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action against U.S. Bank for illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission. U.S. Bank pressured and incentivized its employees to sell multiple products and services to its customers, including imposing sales goals as part of their employees’ job requirements. In response, U.S. Bank employees unlawfully accessed customers’ credit reports and sensitive personal data to apply for and open unauthorized accounts. U.S. Bank must make harmed customers whole and pay a $37.5 million penalty.

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Credit Reporting Agencies’ CEOs Not Liable in FCRA Case; Court Grants Motion to Dismiss

A consumer’s Fair Credit Reporting Act claims against the three credit reporting agencies (CRAs) and their CEOs fell flat after Judge Susan M. Brnovich in the U.S. District Court for the District of Arizona found the plaintiff failed to properly serve the defendants under the FCRA and that her claims were invalid.

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Court Finds Entity Partnering With Medical Provider Does Not Qualify as a Debt Collector Under the FDCPA

In Palacio v. Med. Fin. Sols., No. 21 CV 1288 (N.D. Ill. June 14, 2022), the court granted summary judgment in favor of the defendant, finding that it did not qualify as a “debt collector” under the Fair Debt Collections Practice Act (FDCPA).

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Attorney General Ellison protects Minnesotans from unfair billing and collections with extension of Hospital Agreement

July 27, 2021 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that his Office has negotiated an extension to the regulatory agreement that the Attorney General’s Office holds with all nonprofit hospitals in Minnesota, referred to as the “Hospital Agreement.” The Agreement provides important protections to Minnesotans who receive healthcare services at Minnesota’s hospitals by protecting patients from abusive, harassing, and deceptive practices when hospitals seek to collect medical debt. The Agreement also provides discounts on healthcare services for certain patients and prohibits unfair practices in billing and collections.  

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RMAI Publishes The Purchase, Sale, and Collection of the Fintech Asset Class

July 28, 2022 (Sacramento, CA) – The Receivables Management Association International (RMAI) is pleased to announce the release of a new educational resource, The Purchase, Sale, and Collection of the Fintech Asset Class. The area where financial service products and technology merge is popularly referred to as fintech. Fintech lending has experienced significant growth in the last several years, leading to an increase in nonperforming accounts. Fintech lenders are turning to the receivables management industry for contingency collections and portfolio debt sales. To better understand this asset class, its characteristics, opportunities, and unique issues as it relates to collections, the RMAI Fintech Legal Working Group, formed in 2021, developed this primer.

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Industry Events

RMAi Executive Summit 2022


The Osthoff Resort
Elkhart LakeI , WI
August 02 - 04 , 2022


DCS2022 – Debt Connection Symposium and Expo 2022

Red Rock Casino Resort Spa, 11011 W Charleston Boulevard
Las Vegas , Nevada
September 07 - 09 , 2022

Mark Naiman at 619-363-2993